Meta Platforms Inc. Ceo Mark zuckerberg Will ramp up Heavy Investments in Ai and other futuristic technologies, continuing a year-from tug-of-waar between the company’s long-term bets and the core advertising bushes the Vastis the Vast Majority of Meta’s Revenue.
Zuckerberg Warned Investors Wednes day that meta will continue to spend significantly on infrastructure and other projects like the metavens and ai-Powered glasses, AFORTS AREOTS AREOTSES The company’s future. That will be supported by the ads business, which isn’t generating the kind of Momentum Wall Street Expected. Shares Fell more than 2.8% in Extended Trading.
“We’re seeing ai have a positive impact on Nearly all aspects of our work, from our core businesses to new services and computing platforms,” The Meta CHEF Executive Office Office Office Quarter earnings call. “There are lots of Opportunities to use new AI Advances to Accelerate Our Core Business.”
Meta cautioned that losses from Reality labsIts Division focused on Artificial Intelligence and Augmented Reality, will continue to wideen “meaningful” meaningful this year, adding that the 2025 Budget is still being finalized. Reality Labs Reported A $ 4.4 billion operating loss in the Quarter.
With costs projectioned to reach Nearly $ 100 billion this year, meta is putting pressure on its core advertising business to fund the effort. Meta Told Investors Wednsday that Revenue for the Current Quarter Delhi Be Between $ 45 billion and $ 48 billion. Analysts was expecting fourth -Quarter Revenue of $ 46 Billion.
Zuckerberg has worked to re-frame the social media company as an Ai Innovator in Recent Years, Changing Investor Perception of Meta’s Potential Growth. Meta has developed Several Key Ai Products as Part of that Pivot, Including Large Language Models Used To Power Chatbots, An Assistant Built ITO Its Various Apps, And Ai-Ai-Powered Smart Glasses. Meta is alredy work on the next version of llama, the large language model that powers its ai products and services, and zuckerberg said llama 4 will be faster, more costed-effective and more costed-effective Previous models.
Some of zuckerberg’s most Ambitious Projects, Thought, Are Still Years Away from Mainstream Consumption. Eventually zuckerberg hopes that users will work and play inside of a digital universe know as the metavens, which meta is still building out. The company also recently unveiled its first pair of augmented reality glasses, which can project images onto the physical world. Zuckerberg hopes that Thats Glasses, Called Orion, May One Day Rival The Smartphone.
That focus on ai has helped fuel meta’s stock price, which was up more than 67% this 67% this year at market close wedding, making it one of the best performing stocks in the s & p 500. Cost. “Our AI Investments Continue to Require Serious Infrastructure and I Expect to Continue Investing Significantly There,” Zuckerberg said.
Meanwhile, Meta’s Social Networks, Including Facebook and InstagramContinue to drive the bulk of the business. Meta Reported Sales of $ 40.6 Billion for the period ended Sept. 30, A Jump of 19% over the Prior-Year Quarter, and Just Above The $ 40.3 Billion Average Estimate from Wall Street Analysts.
Meta has leaneed on AI Advancements to Improve its ad targeting and content recommendations, which has had a more immediative impact on business results. The company has pivoted its algorithms to show people more content from outside their network of friends and family, part of a broader strategy to increase engine and keep people scrolling. It’s also been reduction the spores of political content.
AI-Driven feed and video recommendations have been LED to an 8% Increase in Time Spent on Facebook and a 6% Increase on Instagram, Zuckerberg Said Wednsday. Theose recommendations are largerly powered by ai advancans, which help the company more across the predict what people want to see.
Meta said its expenses for the year will be $ 96 billion to $ 98 billion, lowering the top end of that range by $ 1 billion.
© 2024 bloomberg lp